The Internet company Horizon Technologies is being tipped as a good bet for investors by Merrion Capital. The brokers suggest the company's shares are undervalued and offer good potential for investors at current levels.

Horizon's stock market rating is suffering because of the diversity of its business activities. Merrion believes it warrants greater recognition for its fast growing Web integration business, while its position as one of the leading Web integrators in Britain and Ireland makes the group an attractive takeover target.

Based on its analysis, Merrion put a value of €10.80 on Horizon's shares, which are currently trading at €8.50. It also points to Horizon's management record over the past 10 years, which it says offers some comfort to investors that it will be able to fully execute its business plans going forward.

Merrion is also recommending CRH as a buy at €18.65. The group has maintained the pace of its development programme this year and its acquisition formula will continue to be a source of additional growth, according to its latest report.

Trading conditions are generally positive for CRH, which is benefiting from particularly buoyant economic conditions in the US and Ireland, which together account for 74 per cent of trading profits.

And although the construction cycle is mature in both markets, the prospects for further growth are underpinned by new publicly-funded infrastructure programmes.

"CRH is a proven earner of top of the sector returns largely because it is a very astute acquirer of value relative to its European and UK peers." Merrion says the shares are a buy and is indicating a nine-month target price of €24.